A new owner for Gunter

At the time of its opening in 1909, the eight-story, 301-room hotel was the largest in San Antonio. A ninth story was added in 1917 and three more in 1927.

Photo By BOB OWEN/SAN ANTONIO EXPRESS-NEWS

The lobby of the historic Gunter Hotel, seen in 2011, is decorated with massive columns and warm rich wood.

Photo By SHAMINDER DULAI/SAN ANTONIO EXPRESS-NEWS

Lee Bosmans cuts attorney J. Frank Onion III's hair at the Gunter Hotel Barber Shop in 2009, the year of its 100th anniversary.

Photo By COURTESY PHOTO

The 1930s version of the Gunter Hotel Barbershop, courtesy of barber Dave Luce.

Photo By SAN ANTONIO EXPRESS-NEWS

1988 photo of the Gunter Hotel in San Antonio. File Photo

Photo By File Photo

Middle-of-the-road drivers on St. Mary's Street could be cruising for a bruising from confused drivers who take these street signs at their word. A crane working on the addition to the Gunter Hotel partially blocks the left side of the street. On the right, workmen clean debris from the old Texas Theater, where a planned high rise will house the RepublicBank San Antonio. Looming in the background is the Tower Life Building. Published in the San Antonio Express March 26, 1983.

Photo By File Photo

A wagon drawn by two mules pulled up to the Gunter Hotel Monday. County Commissioner A.J. Ploch was driving and there were six Golden Girls aboard. They were delivering tickets to the 1973 Stock Show and Rodeo to the rodeo box office in the Gunter lobby. Published in the San Antonio News Jan. 23, 1973.

Photo By File photo

Juan "Chicago" Rodriguez, 63, is a familiar sight in front of the Gunter Hotel at Houston and St. Mary's streets, where he's been selling the Light every day for 36 years. Published in the San Antonio Light Aug. 4, 1968.

Photo By EXPRESS-NEWS FILE PHOTO

Houston street was booming with business as seen here in this picture from 1946. Frosts, Carl's (at center), and Siegel's were all lined in a row (from left to right) next to the Gunter Hotel (to the left of Frosts) and are among many others that have gone by the wayside.

Photo By COURTESY INSTITUTE OF TEXAN CULT

Roy Rogers on St. Mary's Street at the intersection of Houston Street during his February 1943 visit. Rogers and Trigger both stayed at the Gunter Hotel.

Photo By File Photo

Henry Lange and his Gunter Hotel orchestra. Mr. Lange is discussing "More," a fox trot ballad which he recently composed and which promises to become one of the season's hits. Published in the San Antonio News June 13, 1928.

Photo By File Photo

Some of the delegates to the National Junior Chamber of Commerce convention, which opened at the Gunter Hotel, will not have to worry about whether they are to be listed among the "instructed" or "uninstructed" delegations. Their wives came along, too, to see that their instructions are carried out. Those shown in the picture are: Front row, left to right, Mrs. T.D. Barlow of New Brunswick, N.J.; Mrs. E.E. Rohlff, Omaha, and Mrs. W.H. Jones, Omaha; second row, left to right, Mrs. M.D. Woods, Oklahoma City; Mrs. E.M. Veits, Flint, Mich., and Mrs. J.A. Esquirel, Brooklyn. Published in the San Antonio News June 13, 1928.

More than a year after the Sheraton Gunter Hotel fell into foreclosure, the 103-year-old hotel has a new owner.

Denver-based Greenwood Hospitality Group, the entity that will manage the Gunter, announced Friday that Axle Capital Group, a California investment firm, has inked a deal for the 322-room hotel. Along with the purchase, the ownership group has plans for a multimillion-dollar renovation, which is expected to be completed in the next 18 to 24 months, said Tom Conran, a principal at Greenwood.

“We're looking at a hotel that has a very, very iconic stature in the marketplace,” he said. “The receivership status of the hotel limited the ability of this hotel to perform at a high level.”

The terms of the deal were not disclosed. The hotel is assessed at more than $24 million, according to the Bexar Appraisal District.

The acquisition is the first venture for either entity in the San Antonio market, Conran added.

Among the planned renovations are updates to all the guest rooms and improvements to meeting rooms, public spaces and restaurants. Specific updates were not disclosed, but Conran did say there will be modifications to the food and beverage services, such as the updating the conceptual approach to the menus.

“The ownership entity wants to elevate the stature of this hotel to the level it once had,” Conran said.

There are no plans to close or move the hotel's barbershop, which has operated there since the Gunter opened in 1909, said the establishment's owner, Lee Bosmans. “It'll be here forever,” Bosmans said about his shop.

The ability for the ownership group to make updates to the hotel is an important step into making it an attractive option in the market, said Bruce Walker, president of hotel consulting firm Source Strategies Inc.

“Hopefully this group, and I can't say one way or the other, bought it at a price that will enable them to afford to throw a bunch of money into it, making it nice and fresh,” he said. “The key is to make it a nicer product and have it economically viable.”

In 2006, the Gunter received a $7 million facelift with new paint, carpet, furniture and accessories.

In the 12 months ended June 30, the Gunter saw room revenues increase nearly 7 percent to 8.4 million, according to data Source Strategies provided. The occupancy rate grew 4.5 percent to 55.2 percent, and the hotel also saw an increase in revenue per available room, which jumped 4.6 percent to $71.56. Still, the Gunter ranks 30th in the revenue per room category, compared to other hotels downtown. Early last year, the hotel's previous owners defaulted on a $40 million note. An entity affiliated with J.P. Morgan Chase bought back the property for $34.6 million at a foreclosure auction.